Back in 2023, when Silicon Valley Bank failed and brought down Signature Bank and First Republic Bank in its wake, one of the biggest talking points was the danger social media suddenly posed for bank runs.
The idea was that tweets and posts were helping fan the flames, contributing to customers pulling out their phones and yanking money out of the banks.
In a speech today, Michelle Bowman, the Fed's head of supervision, says that's a false narrative, according to a new report she commissioned.
"Among other things, they found that 96% of the social-media chatter regarding the run appeared after SVB's failure was inevitable," Bowman said in the speech.
The inquiry found that bank-supervision staff in the Biden era could have anticipated and prevented the bank's failure. Read more: